The financial upside of leveraging Section 179 is appealing because it presents an unmatched opportunity that supports equipment purchases. Annually, Section 179 creates a particularly attractive window of opportunity to invest in capital equipment and reap tax benefits and multiple rewards, allowing you to save now and later.
As we near the end of 2023 and look to 2024, now’s a great time to explore how Section 179 can help you help your patients and grow your practice. We’ve outlined some key points you will want to know about Section 179: what it is, who it applies to, how the tax code has changed in recent years, and why there’s no time like the present to take advantage of this tax savings.
What Is Section 179?
Section 179 of the IRS tax code is a government incentive to encourage businesses to invest in themselves by purchasing new equipment or technology. Medical professionals can deduct the FULL purchase price of qualifying equipment bought or financed during the tax year from your gross income.
How has the tax code changed?
Section 179 has existed for years, but its tax advantages expanded and increased in 2018. With a higher limit of $1,160,000 and bonus depreciation of 80%, 2023 continues to be a favorable tax year to upgrade, expand, and improve your business with a new equipment purchase.
What is the timeline for 2023?
If you acquire your equipment and put it into use before December 31, 2023, you qualify for this tax deduction.
How much can I deduct for the 2023 tax year?
If you are the legal owner of the equipment for tax purposes, you may be able to deduct the total cost of any equipment you acquire and put into use in 2023 — up to $1,160,000.00. There’s a $4,050,000.00 cap for equipment purchases per business. And, if you spend between $1,160.000 and the spending cap of $4,050,000, bonus depreciation of 80% may apply.
Can I finance medical equipment and still take the deduction?
YES, and it’s often a great option. Capital Leases and Equipment Finance Agreements qualify for the Section 179 deduction. This means it’s an ideal time to invest in technology from CuraMedix.
📌 NOTE: Your finance payments may be less than the deduction amount, potentially creating a profit when you finance the purchase!
Why should I utilize the Section 179 Tax Code?
Using the Section 179 deduction may lower your tax payment to the government and free up cash for other business needs. By taking advantage of this tax deduction, you are potentially keeping more of YOUR money in YOUR pocket. You can potentially create savings that make your equipment purchase price substantially less.
Does Section 179 Tax Deduction apply to me?
The provisions of Internal Revenue Code Section 179 allow a sole proprietor, partnership, or corporation to expense tangible property in the year it is put into use.
Can you provide an example of the tax deduction?
Medical Device: $50,000
Tax savings: (assuming 35% tax bracket) $12,000
Cost of Equipment After Tax Savings: $38,000
Are there any caveats?
Like any tax deduction, you’ll need to spend money to save money. Section 179 is not reason alone to make a capital purchase. However, for medical professionals focused on improving patient outcomes by investing in the latest technologies and innovations, Section 179 gives you an added reason to reach those goals before the end of 2023.
Because every medical professional and practice differs, speaking with your tax advisor for more information and advice is always a good idea. Interested in learning more about EPAT/ESWT/EMTT devices and integrating this innovative technology into your practice for improved patient outcomes? Contact us today!
CuraMedix, the leading U.S. distributor of STORZ Medical devices, provides its partners with exceptional customer service, marketing guidance, and technical support. The CuraMedix portfolio of products includes the radial pressure wave and focused shockwave devices, and now MAGNETOLITH, the new EMTT device.